Bitcoin jumps 27% in April, outperforming stock markets shaken by tariff-related uncertainty.

U.S. Treasury Secretary Scott Bessent on Wednesday announced that the U.S. is slashing tariffs on most Chinese goods from 145% to 30% for 90 days.

This follows recent progress in trade talks between the U.S. and China, marking a potential turning point in their trade war.

As the world's largest economies work to ease tensions, traders and analysts are keeping a close eye on how Bitcoin will react.

Is this digital asset becoming more than just a hedge? Or is it stepping into a much bigger role.

U.S.-China Tariffs Slash By Over 100%

After months of rising tensions, Bessent said that the two countries have made “substantial progress” in their trade talks.

As part of the agreement, U.S. tariffs on most Chinese goods will drop from 145% to 30% for 90 days. In response, China will cut its tariff on American imports from 125% to just 10%. Both sides called it a big step forward after years of back-and-forth conflict.

BREAKING: 🇺🇸🇨🇳 United States cuts tariffs on Chinese goods from 145% to 30% for 90 days.China lowers tariffs on US from 125% to 10% for 90 days. pic.twitter.com/FaRJfZA1hu

Moreover, Bessent said the talks were “productive,” while Chinese counterpart, Vice Premier He Lifeng, described it as “an important first step.”

But in the middle of all this diplomacy, the crypto world was watching something else, how Bitcoin would respond.

Is Bitcoin A Final Safe Haven?

In April, as global markets were shaken by new tariffs, Bitcoin held firm. In fact, it bounced back from $75,000 to nearly $95,000, a 27% rise in less than a month, while major stock indexes like the S&P 500 and Nasdaq fell.

This led many to wonder if Bitcoin is now being treated like digital gold.

While, some analysts had suggested that countries might be turning to Bitcoin to dodge tariffs, which could explain its resilience.

However, popular crypto trader Daan Crypto believes the real test for Bitcoin starts now. As the trade tension between the U.S. and China has cooled off then something bigger is going on.

“The question is, will Bitcoin continue to rise despite the good news, or will it fall? If it continues to rise despite the easing trade tensions, then we'll know for sure that we're in a bull market and Bitcoin is no longer acting as a hedge or safe haven,” Daan explained in a recent May 11 post.

The post added that if Bitcoin does fall with the easing trade tensions, then it might be acting as a safe haven and it’s value is driven by risk appetite.

Institutional Money Continues It’s Inflow

Despite all the economic uncertainty and ongoing trade tensions, Bitcoin is showing strong signs of growth. On May 9, it recorded $401.2 million in inflows, while outflows were much lower at $79.8 million.

Leading the inflow charge BlackRock led the inflows with $356.2 million, followed by Fidelity with $45 million.

In just one week, Bitcoin ETFs saw $1 billion in total inflows, as Bitcoin climbed back to $105,783, rising 12%. This shows growing investor confidence, even as the U.S. and China work to ease trade tensions.